So it appears, Michael F. Mahoney, a director at CVS Health Corp, just went shopping for stock like it was a BOGO sale at his own dang pharmacy. The guy scooped up 30,000 CVS shares at $66.70 a pop, bringing his direct ownership to 39,356 shares—because apparently, owning just a casual 9,356 wasn’t enough. Greedy, much? 

(Source: Giphy) 

Now I’m not saying he knows something we don’t, but I’m definitely not throwing thought that out the window either. Insiders sell for all kinds of reasons, but they only buy for one. And it could be due to the fact that Mahoney thinks CVS is undervalued, and he’s putting his money where his mouth is. Meaning, when a guy with a front-row seat to the company’s operations starts buying in bulk, it’s usually worth paying attention.

So, the question remains: Why in the hell would he sell a kidney to pile $2.6 million into CVS Health? Well, the stock has no doubt been on a tear lately, up 50% YTD and nearly 25% just this month all while competitors like Walgreens are looking like absolute clowns (down -4.66% MTD). The main driver, of course, comes from the fact that investors have been shilling CVS's better-than-expected Q4 earnings and a 2025 outlook that actually sounds… competent.

(Source: MarketBeat) 

For instance, revenue hit $97.71B last quarter, up 4% YOY while same-store pharmacy sales jumped 13%. Additionally, healthcare benefit revenue surged 23% to $33 billion, as EPS guidance jumped to the $5.75-$6.00 range (up from $5.42 in 2024). So yeah, the numbers look more than attractive.

But then again, it’s not all sunshine and pill bottles here. Adjusted EPS dropped 43.9% YoY. The healthcare benefits business posted a $439M operating loss, thanks to high medical benefit ratios (MBR) and lower star ratings. Oh, and CVS expects to lose over 1 million insurance members in 2025—but don’t worry, they swear they’ll make it up elsewhere.

(Source: Managed HealthCare) 

So, is Mahoney a genius or just YOLOing? In my personal opinion, considering that Mahoney isn’t loading up on call options like some degenerate Reddit trader—and instead committing real cash to actual shares–the man may just believe in CVS’s turnaround plan. 

Naturally, the market loves insider buying because it screams confidence. When the people running the company are swiping their own hard earned money for shares, it usually means they think the stock is undervalued and poised for a run-up. And considering CVS is trading at a forward P/E of 11.02x (compared to Walgreens at a dirt-cheap 6.32x), it appears investors are clearly willing to pay a premium for a growth story that DOESN’T include single-handedly fueling the opioid epidemic (sorry, not sorry Walgreens). 

(Source: Giphy) 

In the end though, it’s clear Mahoney isn’t buying CVS shares for fun. He either knows something the rest of us don’t, or he’s just a really expensive bag holder. But given the company’s strong momentum, improving margins, and a stock price that’s outperforming its competitors, it’s not a bad look.

However, CVS still has cost pressures and a healthcare business that needs to stop hemorrhaging cash. But if they can pull it off, Mahoney’s purchase will be a tell-tale sign that following the smart money—isn’t as bad of an idea as some people think. If not? Well… at least he got a discount on sinking his own ship LOL.

(Source: Giphy) 

For now, keep an eye on CVS Health as the stock is absolutely roaring this month and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time…

P.S. Want deep dives on the hottest AI plays before the rest of the market catches on? Want to know who’s riding the hype train and who’s actually building something that won’t collapse the second the AI bubble deflates? Want the inside track on the moves that matter before they hit the front page? Then quit playing around and subscribe to Stocks.News Premium ASAP… 

Stocks.News does not hold positions in companies mentioned in the article.